FHLB Advances

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					 Advancing Housing and Community Growth

        FHLB Advances
  Your Ultimate Liquidity Source
               April 20, 2007


           MAUREEN KALENA
VICE PRESIDENT, BANKING SERVICES DIVISION
           Today’s Agenda


Market Environment and Expectations
What Members are Borrowing and Why
Effective Liability Management Considerations
  Funding Strategies
  Deposit Pricing
Historical Yield Curve
First Quarter Member Behavior


De-leveraging of Balance Sheet
Restructuring of Securities Portfolio
No New Securities Purchases
Increased Competition for Loans & Deposits
Diversification of Loan Portfolio
Reconsideration of Branching
2007 Market Environment Expectations


   Challenging Yield Curve
     Margin Compression Remains a Factor

   Increased Credit Risk
   Deposit gathering will remain difficult—
   competition from money center, super regional
   and internet banks
                                The Funding Gap


           $700

           $600

           $500

           $400
Billions




           $300

           $200

           $100

            $0
                  2000   2001      2002    2003        2004     2005   2006

                                  Assets   Deposits + Capital
                         Member Segmentation



                        Systematic Interest Rate   Daily Liquidity Users
                            Risk Managers                  18%
                                 22%



                                                                           Leveragers
                                                                              13%




Opportunistic Funders
       17%


                                                   Non-Users
                                                     30%
                           FHLBNY Advances Outstanding
                                                      As of March 31, 2007

                      Advance Type                                                            Institution Type


                                                                                                       Credit Unions,
                                                                                                          $0.480,
              FF Floater                                                                                     1%
                                                 Long-Term Fixed
                 1%
                                                      15%




                                                              Floating Rate
                                                                   22%




                                                       OLOC                                                             Commercial
                                               Repo     2%
Convertible                 Short-Term Fixed                                                                              Banks,
                                                5%
   55%                             1%                                                                                    $26.389
                                                                                   Thrifts, $32.143                       Billion,
                                                                                        Billion,                           45%
                                                                                         54%




                                                      Note: Data represented in Billions
  Match Funding vs. Pool Funding


      Match Funding                                Pool Funding

       Individual Loans                           Group Loans
              vs.                                     vs.
Individual Advances/Deposits                Group Advances/ Deposits
                                              (loans typically has similar characteristics
                                                   i.e. type, collateral and purpose)


Advantages             Disadvantages        Advantages             Disadvantages
  Easy to                 Cumbersome as      Fund in bulk             Prepayment
  understand              portfolio grows    Less tracking            assumptions are not
  Easy to track                              required                 always correct
  Prepayments



  Predominantly used for Commercial Loans     Predominantly used for Residential Loans
                      Strategic Funding
Funding
                                            $30 million
Requirement
Funding                       Retail                      Wholesale

Allocation               $20 million                  $10 million
Asset
                      Loans                                 Investments
Classes
Product
           1-4         Multi                C&I           MBS         Corp.
Line
Product
           30yr FRM    15yr FRM             ARM
Type
$ Dollar
Forecast              $10 million

Fixed             Wholesale        Retail

Mix              $7 million    $3 million
                                   Advance Rate Curve

6.00

                                                                                                                                                 5.88

                                                                                                                                      5.82
5.75                                                                                                                 5.75

                                                                              5.62                   5.68
                                                                                                                                             5.60
                                                                       5.57
                                                                                                                              5.50            5.55
5.50                                                        5.50                                             5.45              5.51
        5.44                         5.44
                  5.42      5.41                  5.44                                        5.40            5.44
                                      5.42
                  5.36                                                                       5.37
        5.35                5.36                                                     5.37
                                        5.30                       5.32
                                                5.31                 5.25     5.31
5.25                                                     5.26
                                               5.19
                                                         5.16


                              5.07
5.00
          4.95      4.95



4.75
       7 Day     21 Day    2 Mo      6 Mo      2 Yr      4 Yr      6 Yr       8 Yr          10 Yr           12 Yr           14 Yr            20 Yr


                              4/17/2006 0:00             10/17/2006 0:00                    4/17/2007 0:00
Funding Strategy Model
30 Year FRM Balances in Various Rate Environments
            12,000



            10,000



             8,000
  Balance




             6,000



             4,000



             2,000



                0
                     0   24   48    72     96    120    144     168    192    216   240       264   288    312   336   360
                                                                  Month


                                   Advances                   Mtg:Rates Flat              Mtg:Rates Down 100bp
                                   Mtg:Rates Up 200bp         Mtg:Rates Up 100bp          Mtg:Rates Up 300bp
30 Year FRM Balances in Various Rate Environments
                                                                                   FMS Bank
                                                                30 FR Mortgages Funded 70% with FHLB Advances
                                                                                         FMS Bank
                                                                             SUMMARY - Years 1-5
                                                                                 ($000 Funded
                                                                  30 FR MortgagesOmitted) 70% with FHLB Advances
                                                                                    SUMMARY – Years 1-5
                                                                                   ($000 Omitted)
Strategy:     $7.0 million 10 Year Classic Credit.
                                                                     Strategy: $7.0 million 10 Year Classic Credit.



                                                                   TRANSACTION RESULTS                                                PRO-FORMA IMPACT
     Rate           Initial
   Scenario       Net Spread             Average     Average       Average    Average      Average       5 Year Total    Return on Assets          Return on Equity
                                        Long Term    Capital/       Asset       Cost      Net Interest   Net Interest
                                          Assets     Assets         Yield     of Funds      Spread          Income      Before       After       Before          After

 Base Case/
 Rates Flat          1.50%                 6,230     13.45%         5.77%      5.23%        0.53%           $221        2.84%        2.77%      20.46%          20.56%

Up 100 bp            1.50%                 7,551     13.44%         6.17%      5.23%        0.94%           $395        2.84%        2.78%      20.46%          20.66%

Up 200 bp            1.50%                 8,128     13.42%         6.24%      5.31%        0.93%           $405        2.84%        2.77%      20.46%          20.67%

Up 300 bp            1.50%                 8,297     13.41%         6.25%      5.43%        0.82%           $360        2.84%        2.77%      20.46%          20.65%

Down 50 bp           1.50%                 3,822     13.44%         4.72%      5.29%        -0.57%          -$206       2.84%        2.73%      20.46%          20.32%

Down 100 bp          1.50%                 2,661     13.42%         3.91%      5.31%        -1.40%          -$511       2.84%        2.71%      20.46%          20.16%

Down 150 bp          1.50%                 1,939     13.41%         3.18%      5.32%        -2.14%          -$776       2.84%        2.68%      20.46%          20.01%
30 Year FRM Balances in Various Rate Environments
 Institution:       FMS Bank
 Version:           30 FR Mortgages Funded 70% with FHLB Advances                                     INPUT ASSUMPTIONS                                           All Pricing Data As Of: April 19, 2007 12:00 AM
 Description:       $7.0mm                                                                                 ($000 Omitted)
         I          INSTITUTION DATA & ASSUMPTIONS                                   II        ASSETS
                                                                                                                                                                                     Prepayment Assumptions Used
             Institution Data as of:         12/31/2006                               Product Description: 30 FR Mortgages Funded 70% with FHLB Advances
                             Equity:            30,078                                     Gross Coupon: 6.250%
                       Total Assets:           216,595                                                       Volume/Months      Rate/Price     WAL                             Scenario             Shock        CPR
           Pre-Tax Income (Ann.):                6,155                        Principal Amt. (Net Coupon):           10,000        6.250%      56                                 1                 -1.50%       65%
                      Capital Ratio:            13.89%                                    Purchase Price:            10,000      100.000%                                         2                 -1.00%       53%
        Pre-Tax Return on Assets:                2.84%                                    Purchase Yield:                          6.250%                                         3                 -0.50%       38%
        Pre-Tax Return on Equity:               20.46%                                      Final Maturity:             360                                                       4                  BASE        18%
                                                                                      Amortization Period:              360                                                       5                 1.00%        10%
                           Assumptions Used                                             Months Seasoned:                  0                                                       6                 2.00%         7%
                    S/T Interest Rate:      3.50%                                                                                                                                 7                 3.00%         6%
                      S/T Rate Floor:       2.00%                                            S/T Investments:                       0           3.500%           0
                Rate Shock Phase In:           12 Months
              % of Earnings Retained:            40.05%                                      TOTAL ASSETS:                    10,000            6.250%          56
        III         FIXED MATURITY ADVANCES                                          IV        PUTABLE ADVANCES

                            Classic Advances                                                         Type                     Volume          Rate             WAL              Option
                                                                                                      3/1                          0         0.00%              0                 0
    Maturity                  Volume          Rate               WAL                                  5/1                          0         0.00%              0                 0
     1 Year                    1,000         5.31%                12                                  5/3                          0         0.00%              0                 0
     2 Year                        0         5.09%                 0                                  7/3                          0         0.00%              0                 0
     3 Year                    1,250         5.02%                36                                 10/3                          0         0.00%              0                 0
     4 Year                        0         5.04%                 0                                 Total                         0         0.00%              0
     5 Year                    2,500         5.08%                60
     6 Year                        0         5.15%                 0
     7 Year                    1,250         5.18%                84                 V         INITIAL BALANCE SHEET & RESULTS
     8 Year                        0         5.22%                 0
     9 Year                        0         5.26%                 0                      Description                         Volume               Rate              WAL
    10 Year                    1,000         5.28%               120                        Assets                            10,000            6.250%                56
    15 Year                        0         0.00%                 0
      Total                    7,000         5.15%                62                   Liabilities
                                                                                    Classic Advances                           7,000              5.15%                62
                          Amortizing Advances                                      Amortizing Advances                             0              0.00%                 0
                                                                                    Putable Advances                               0              0.00%                 0
    Maturity                  Volume          Rate               WAL                 Total Advances                            7,000              5.15%                62
     2 Year                        0         0.00%                0                Short-Term Funding                          3,000              3.50%                 1
     3 Year                        0         5.25%                0                  Total Liabilities                        10,000              4.65%                44
     5 Year                        0         5.11%                0
     7 Year                        0         4.89%                0                                     INITIAL NET SPREAD                   1.60%
    10 Year                        0         5.06%                0
    15 Year                        0         0.00%                0                Base Case Lifetime Cost of Advances:                     5.23%
    20 Year                        0         0.00%                0                     Adjusted Initial Net Spread:                        1.54%
      Total                        0         0.00%                0                      New Capital/Assets Ratio:                          13.27%

 This analysis is based upon information obtained from sources that the Federal Home Loan Bank of New York (Bank) considers reliable, and upon other data, assumptions and requirements required by you.
 No representation is made that the information is accurate or complete. The Bank has not attempted to evaluate all potential investment opportunities, funding alternitives, or other financial risk inherent
 in the scenarios presented. This analysis does not represent either a recommendation by the Bank that you pursue any particular investment strategy, or an assurance of any specific result. Ongoing
 management, whose effects cannot be addressed by this analysi, is normally the most critical factor in the success of any financial strategy; therefore, you should carefully consider your institution's
 financial management capabilities before adopting any strategies based upon this analysis.
30 Year FRM Balances in Various Rate Environments

           12,000          160 bps.
                        Initial Spread
                                                      Cash Flow from $10 million, 6.25%, 30-year FRM
           10,000
                                                                            Monthly                  Volume                   Rate
                                                                            1 Year                   $1 million               5.31%
            8,000                                                           3 Year                   $1,250 million           5.02%
                                                                            5 Year                   $2,500 million           5.08%
                                                                            7 Year                   $1,250 million           5.18%
 Balance




            6,000
                                                                            10 Year                  $1 million               5.28%
                                                                            Total                    $7 million               5.15%
                                                                            Total liability cost                              4.65%
            4,000



            2,000



               0
                    0       24     48     72     96    120    144     168       192      216       240       264      288   312       336   360
                                                                        Month


                                         Advances                   Mtg:Rates Flat                       Mtg:Rates Down 100bp
                                         Mtg:Rates Up 200bp         Mtg:Rates Up 100bp                   Mtg:Rates Up 300bp
30 Year FRM Balances in Various Rate Environments
                                                                                       FMS FMS Bank
                                                                                            Bank
                                                                    30 FR Mortgages Funded 70% with FHLB Advances
                                                                   30 FR Mortgages Funded 70% with FHLB Advances
                                                                                 SUMMARY - Years 1-5
                                                                                   SUMMARY – Years 1-5
                                                                                     ($000 Omitted)
                                                                                            ($000 Omitted)


 Strategy:                                                Strategy: $1.0 million 5 Year Classic Credit, $1.3 million 7 Year Classic Credit and $1.0 million 10 Rate,
                $1.0 million 1 Year Classic Credit, $1.3 million 3 Year Classic Credit, $2.5 million1 Year Fixed Rate, $1.3 million 3 Year Fixed Year Classic Credit.
                                 $2.5 million 5 Year Fixed Rate, $1.3 million 7 Year Fixed Rate and $1.0 million 10 Year Fixed Rate.


                                                                         TRANSACTION RESULTS                                                                     PRO-FORMA IMPACT
      Rate           Initial
    Scenario       Net Spread         Average           Average          Average         Average           Average         5 Year Total          Return on Assets             Return on Equity
                                     Long Term          Capital/          Asset            Cost           Net Interest     Net Interest
                                       Assets           Assets            Yield          of Funds           Spread            Income           Before            After      Before          After

   Base Case/
   Rates Flat         1.60%             6,230           13.53%            6.13%           5.02%              1.11%              $387           2.84%            2.79%      20.46%          20.65%

  Up 100 bp           1.60%             7,551           13.47%            6.25%           5.01%              1.24%              $495           2.84%            2.79%      20.46%          20.72%

  Up 200 bp           1.60%             8,128           13.43%            6.25%           5.23%              1.02%              $439           2.84%            2.78%      20.46%          20.69%

  Up 300 bp           1.60%             8,297           13.41%            6.25%           5.51%              0.74%              $327           2.84%            2.77%      20.46%          20.63%

  Down 50 bp          1.60%             3,822           13.53%            5.08%           5.14%             -0.05%               -$7           2.84%            2.76%      20.46%          20.44%

  Down 100 bp         1.60%             2,661           13.51%            4.21%           5.16%             -0.95%             -$281           2.84%            2.74%      20.46%          20.29%

  Down 150 bp         1.60%             1,939           13.50%            3.44%           5.17%             -1.73%             -$513           2.84%            2.72%      20.46%          20.16%
30 Year FRM Balances in Various Rate Environments
Institution:       FMS Bank
Version:           30 FR Mortgages Funded 70% with FHLB Advances                                     INPUT ASSUMPTIONS                                           All Pricing Data As Of: April 19, 2007 12:00 AM
Description:       $7.0mm                                                                                 ($000 Omitted)
        I          INSTITUTION DATA & ASSUMPTIONS                                   II        ASSETS
                                                                                                                                                                                    Prepayment Assumptions Used
            Institution Data as of:         12/31/2006                               Product Description: 30 FR Mortgages Funded 70% with FHLB Advances
                            Equity:            30,078                                     Gross Coupon: 6.250%
                      Total Assets:           216,595                                                       Volume/Months      Rate/Price     WAL                             Scenario             Shock        CPR
          Pre-Tax Income (Ann.):                6,155                        Principal Amt. (Net Coupon):           10,000        6.250%      56                                 1                 -1.50%       65%
                     Capital Ratio:            13.89%                                    Purchase Price:            10,000      100.000%                                         2                 -1.00%       53%
       Pre-Tax Return on Assets:                2.84%                                    Purchase Yield:                          6.250%                                         3                 -0.50%       38%
       Pre-Tax Return on Equity:               20.46%                                      Final Maturity:             360                                                       4                  BASE        18%
                                                                                     Amortization Period:              360                                                       5                 1.00%        10%
                          Assumptions Used                                             Months Seasoned:                  0                                                       6                 2.00%         7%
                   S/T Interest Rate:      3.50%                                                                                                                                 7                 3.00%         6%
                     S/T Rate Floor:       2.00%                                            S/T Investments:                       0           3.500%           0
               Rate Shock Phase In:           12 Months
             % of Earnings Retained:            40.05%                                      TOTAL ASSETS:                    10,000            6.250%          56
       III         FIXED MATURITY ADVANCES                                          IV        PUTABLE ADVANCES

                           Classic Advances                                                         Type                     Volume          Rate             WAL              Option
                                                                                                     3/1                          0         0.00%              0                 0
   Maturity                  Volume          Rate               WAL                                  5/1                          0         0.00%              0                 0
    1 Year                        0         5.31%                0                                   5/3                          0         0.00%              0                 0
    2 Year                        0         5.09%                0                                   7/3                          0         0.00%              0                 0
    3 Year                        0         5.02%                0                                  10/3                          0         0.00%              0                 0
    4 Year                        0         5.04%                0                                  Total                         0         0.00%              0
    5 Year                        0         5.08%                0
    6 Year                        0         5.15%                0
    7 Year                        0         5.18%                0                  V         INITIAL BALANCE SHEET & RESULTS
    8 Year                        0         5.22%                0
    9 Year                        0         5.26%                0                       Description                         Volume               Rate              WAL
   10 Year                        0         5.28%                0                         Assets                            10,000            6.250%                56
   15 Year                        0         0.00%                0
    Total                         0         0.00%                0                    Liabilities
                                                                                   Classic Advances                               0              0.00%                 0
                         Amortizing Advances                                      Amortizing Advances                         7,000              4.89%                45
                                                                                   Putable Advances                               0              0.00%                 0
   Maturity                  Volume          Rate               WAL                 Total Advances                            7,000              4.89%                45
    2 Year                        0         0.00%                0                Short-Term Funding                          3,000              3.50%                 1
    3 Year                        0         5.25%                0                  Total Liabilities                        10,000              4.47%                32
    5 Year                        0         5.11%                0
    7 Year                    7,000         4.89%               45                                     INITIAL NET SPREAD                   1.78%
   10 Year                        0         5.06%                0
   15 Year                        0         0.00%                0                Base Case Lifetime Cost of Advances:                      4.96%
   20 Year                        0         0.00%                0                     Adjusted Initial Net Spread:                        1.73%
    Total                     7,000         4.89%               45                     New Capital/Assets Ratio:                           13.27%

This analysis is based upon information obtained from sources that the Federal Home Loan Bank of New York (Bank) considers reliable, and upon other data, assumptions and requirements required by you.
No representation is made that the information is accurate or complete. The Bank has not attempted to evaluate all potential investment opportunities, funding alternitives, or other financial risk inherent
in the scenarios presented. This analysis does not represent either a recommendation by the Bank that you pursue any particular investment strategy, or an assurance of any specific result. Ongoing
management, whose effects cannot be addressed by this analysi, is normally the most critical factor in the success of any financial strategy; therefore, you should carefully consider your institution's
financial management capabilities before adopting any strategies based upon this analysis.
30 Year FRM Balances in Various Rate Environments
            12,000          178 bps.
                         Initial Spread
                                                       Cash Flow from $10 million, 6.25%, 30-year FRM
            10,000
                                                                             Monthly                  Volume                Rate
                                                                             7 Year                   $7 million            4.89%
             8,000                                                           Total                    $7 million            4.89%
                                                                             Total liability cost                           4.47%
  Balance




             6,000



             4,000



             2,000



                0
                     0       24     48     72     96    120    144     168       192       216      240       264   288    312      336   360
                                                                         Month


                                          Advances                   Mtg:Rates Flat                       Mtg:Rates Down 100bp
                                          Mtg:Rates Up 200bp         Mtg:Rates Up 100bp                   Mtg:Rates Up 300bp
30 Year FRM Balances in Various Rate Environments
                                                                                    FMS Bank
                                                                                         FMS Bank
                                                                 30 FR Mortgages Funded 70% with FHLB Advances
                                                                              SUMMARY - Years 1-5
                                                                30 FR Mortgages Funded 70% with FHLB Advances
                                                                                  ($000 Omitted)
                                                                                 SUMMARY – Years 1-5
                                                                                 ($000 Omitted)

 Strategy:     $7.0 million 7 Year Amortizer.
                                                                   Strategy: $7.0 million 7 Year Amortizer.



                                                                    TRANSACTION RESULTS                                               PRO-FORMA IMPACT
      Rate           Initial
    Scenario       Net Spread             Average    Average       Average    Average      Average       5 Year Total    Return on Assets          Return on Equity
                                         Long Term   Capital/       Asset       Cost      Net Interest   Net Interest
                                           Assets    Assets         Yield     of Funds      Spread          Income      Before       After       Before          After

  Base Case/
  Rates Flat          1.78%                 6,230    13.55%         6.25%      4.64%        1.61%           $531        2.84%        2.81%      20.46%          20.73%

 Up 100 bp            1.78%                 7,551    13.48%         6.25%      4.76%        1.49%           $594        2.84%        2.80%      20.46%          20.77%

 Up 200 bp            1.78%                 8,128    13.43%         6.25%      5.11%        1.14%           $491        2.84%        2.78%      20.46%          20.72%

 Up 300 bp            1.78%                 8,297    13.41%         6.25%      5.51%        0.74%           $331        2.84%        2.77%      20.46%          20.63%

 Down 50 bp           1.78%                 3,822    13.59%         5.43%      4.86%        0.57%           $159        2.84%        2.79%      20.46%          20.53%

 Down 100 bp          1.78%                 2,661    13.58%         4.52%      4.90%        -0.38%           -$91       2.84%        2.77%      20.46%          20.39%

 Down 150 bp          1.78%                 1,939    13.57%         3.70%      4.91%        -1.21%          -$301       2.84%        2.75%      20.46%          20.28%
                                     10 Year Commercial Mortgages
Institution:       FMS
Version:           10 Year Commercial Loan funded 100% with FHLB advances                            INPUT ASSUMPTIONS                                           All Pricing Data As Of: April 11, 2007 12:00 AM
Description:       $10.0mm                                                                                ($000 Omitted)
        I          INSTITUTION DATA & ASSUMPTIONS                                   II        ASSETS
                                                                                                                                                                                    Prepayment Assumptions Used
            Institution Data as of:         12/30/2006                               Product Description: 10 Year Commercial Loan funded 100% with FHLB
                            Equity:            30,078                                     Gross Coupon: 7.250%
                      Total Assets:           216,595                                                       Volume/Months      Rate/Price     WAL                             Scenario             Shock        CPR
          Pre-Tax Income (Ann.):                6,155                        Principal Amt. (Net Coupon):           10,000         7.250%      68                                1                 -1.50%       0%
                     Capital Ratio:            13.89%                                    Purchase Price:            10,000      100.000%                                         2                 -1.00%       0%
       Pre-Tax Return on Assets:                2.84%                                    Purchase Yield:                           7.250%                                        3                 -0.50%       0%
       Pre-Tax Return on Equity:               20.46%                                      Final Maturity:             120                                                       4                  BASE        0%
                                                                                     Amortization Period:              120                                                       5                 1.00%        0%
                          Assumptions Used                                             Months Seasoned:                  0                                                       6                 2.00%        0%
                   S/T Interest Rate:      3.50%                                                                                                                                 7                 3.00%        0%
                     S/T Rate Floor:       2.00%                                            S/T Investments:                       0           3.500%           0
               Rate Shock Phase In:           12 Months
             % of Earnings Retained:            40.05%                                      TOTAL ASSETS:                    10,000            7.250%          68
       III         FIXED MATURITY ADVANCES                                          IV        PUTABLE ADVANCES

                           Classic Advances                                                         Type                     Volume          Rate             WAL              Option
                                                                                                     3/1                          0         0.00%              0                 0
   Maturity                  Volume          Rate               WAL                                  5/1                          0         0.00%              0                 0
    1 Year                        0         5.31%                0                                   5/3                          0         0.00%              0                 0
    2 Year                        0         5.09%                0                                   7/3                          0         0.00%              0                 0
    3 Year                        0         5.02%                0                                  10/3                          0         0.00%              0                 0
    4 Year                        0         5.04%                0                                  Total                         0         0.00%              0
    5 Year                        0         5.08%                0
    6 Year                        0         5.15%                0
    7 Year                        0         5.18%                0                  V         INITIAL BALANCE SHEET & RESULTS
    8 Year                        0         5.22%                0
    9 Year                        0         5.26%                0                       Description                         Volume               Rate              WAL
   10 Year                        0         5.28%                0                         Assets                            10,000            7.250%                68
   15 Year                        0         0.00%                0
     Total                        0         0.00%                0                    Liabilities
                                                                                   Classic Advances                               0              0.00%                 0
                         Amortizing Advances                                      Amortizing Advances                        10,000              5.21%                66
                                                                                   Putable Advances                               0              0.00%                 0
   Maturity                  Volume          Rate               WAL                 Total Advances                           10,000              5.21%                66
    2 Year                        0         0.00%                0                Short-Term Funding                              0              3.50%                 0
    3 Year                        0         5.25%                0                  Total Liabilities                        10,000              5.21%                66
    5 Year                        0         5.11%                0
    7 Year                        0         5.14%                0                                     INITIAL NET SPREAD                   2.04%
   10 Year                   10,000         5.21%               66
   15 Year                        0         0.00%                0                Base Case Lifetime Cost of Advances:                      5.28%
   20 Year                        0         0.00%                0                     Adjusted Initial Net Spread:                         1.97%
     Total                   10,000         5.21%               66                      New Capital/Assets Ratio:                          13.27%

This analysis is based upon information obtained from sources that the Federal Home Loan Bank of New York (Bank) considers reliable, and upon other data, assumptions and requirements required by you.
No representation is made that the information is accurate or complete. The Bank has not attempted to evaluate all potential investment opportunities, funding alternitives, or other financial risk inherent
in the scenarios presented. This analysis does not represent either a recommendation by the Bank that you pursue any particular investment strategy, or an assurance of any specific result. Ongoing
management, whose effects cannot be addressed by this analysi, is normally the most critical factor in the success of any financial strategy; therefore, you should carefully consider your institution's
financial management capabilities before adopting any strategies based upon this analysis.
                                  10 Year Commercial Mortgages
                                                                                  FMS
                                                                                    FMS Bank
                                                        10 Year Commercial Loan funded 100% with FHLB advances
                                                                         SUMMARY - Years 1-5
                                                      10 Year Commercial Loan funded 100% with FHLB Advances
                                                                             ($000 Omitted)
                                                                            SUMMARY – Years 1-5
                                                                           ($000 Omitted)

Strategy:     $10.0 million 10 Year Amortizer.
                                                              Strategy: $10.0 million 10 Year Amortizer.


                                                              TRANSACTION RESULTS                                                PRO-FORMA IMPACT
     Rate           Initial
   Scenario       Net Spread            Average    Average    Average    Average      Average       5 Year Total    Return on Assets          Return on Equity
                                       Long Term   Capital/    Asset       Cost      Net Interest   Net Interest
                                         Assets    Assets      Yield     of Funds      Spread          Income      Before       After       Before          After

 Base Case/
 Rates Flat          2.04%                8,104    13.46%      7.24%      5.28%        1.96%           $842        2.84%        2.81%      20.46%          20.90%

Up 100 bp            2.04%                8,104    13.46%      7.24%      5.28%        1.96%           $843        2.84%        2.81%      20.46%          20.90%

Up 200 bp            2.04%                8,104    13.46%      7.24%      5.28%        1.96%           $844        2.84%        2.81%      20.46%          20.90%

Up 300 bp            2.04%                8,104    13.46%      7.25%      5.28%        1.97%           $846        2.84%        2.81%      20.46%          20.90%

Down 50 bp           2.04%                8,104    13.46%      7.24%      5.28%        1.95%           $841        2.84%        2.81%      20.46%          20.90%

Down 100 bp          2.04%                8,104    13.46%      7.24%      5.28%        1.95%           $840        2.84%        2.81%      20.46%          20.90%

Down 150 bp          2.04%                8,104    13.46%      7.23%      5.28%        1.95%           $840        2.84%        2.81%      20.46%          20.90%
                            10 Year Commercial Mortgage
          12,000          2.04 bps.
                       Initial Spread
                                                     Cash Flow from $10 million, 6.25%, 10-year Commercial Mortgage
          10,000
                                                                           Monthly                  Volume                 Rate
                                                                           10 Year                  $10 million            7.25%
           8,000                                                           Total                    $10 million            5.21%
                                                                           Total liability cost                            5.21%
Balance




           6,000



           4,000



           2,000



              0
                   0       24     48     72     96     120   144     168       192       216      240       264   288    312       336   360
                                                                       Month


                                        Advances                   Mtg:Rates Flat                       Mtg:Rates Down 100bp
                                        Mtg:Rates Up 200bp         Mtg:Rates Up 100bp                   Mtg:Rates Up 300bp
 Benefits FHLBNY MULOC to Members

Low cost
Allows member banks to use their mortgage and
securities collateral more efficiently
Increases member banks’ liquidity position
Reduces transaction costs and eliminates margin
calls
Increases earnings on securities portfolios by
allowing member banks to reinvest into higher
yielding assets
Encourages member banks to increase lending to
the communities they service
                 State of New Jersey


The New Jersey Administrative Code:

“In addition to obligations otherwise authorized in N.J.S.A. 17:9-41,
eligible collateral shall also include irrevocable stand-by letters of
credit issued by the Federal Home Loan Bank of New York. The
Commissioner shall review and approve the form of all such
letters of credit proposed by a public depository as eligible
collateral under this section. Further, the original letter of credit
shall be held by the Commissioner.” N.J.A.C. 3:1-4.13 - Eligible
Collateral.
          Deposit Pricing Principles


Two tools are needed to make effective pricing decisions:
  Benchmark Rate
     Used to determine whether your deposits and your
     competitors’ deposits are appropriately priced

  Marginal Cost Analysis
     Reveals the true cost of raising rates on existing funds in
     order to attract new funds
         Selecting a Benchmark Rate
Consider all funding sources (i.e., deposits and wholesale
borrowings)
Benchmarks include:
  Federal Home Loan Bank advance rates
  Rates on CDs in the Internet CD market
  The LIBOR Curve
  The Swap Curve
  Fed Funds
  Bankrate.com


Start out using FHLBNY advance curve
  Funding source for virtually every regulated depository financial institution
  Supplies a complete funding curve, covering short- and long-term
  borrowings
  Rates are available on the Internet at www.fhlbny.com
Members rates by geographic region – New Jersey
                                                                                   NJ Deposit Curve
                                                  6.00
                                                  5.50

                                                  5.00
                                                  4.50

                                                  4.00
                                                  3.50

                                                  3.00
                                                  2.50
                                                         3 MO CD 6 MO CD 1 YR CD         2 YR CD   3 YR CD   4 YR CD   5 YR CD
                                                                      New Jersey Members       HLB Advance 4/9/07

                                                  *4/9/2007
                                                   Product     Central Jersey     Northern Jersey     Southern Jersey NJ Total
                                                  3 MO CD                  3.45                3.05                3.44   3.28
                                                  6 MO CD                  4.35                3.98                4.17   4.15
                                                  1 YR CD                  4.49                4.00                4.35   4.25
                                                  2 YR CD                  4.21                4.20                4.28   4.23
                                                  3 YR CD                  4.15                4.15                4.34   4.21
                                                  4 YR CD                  4.26                4.15                4.33   4.24
                                                  5 YR CD                  4.43                4.46                4.59   4.49
                                                  *3/12/2007
                                                   Product     Central Jersey   Northern Jersey       Southern Jersey NJ Total
                                                  3 MO CD                  3.43              2.91                  3.38   3.20
                                                  6 MO CD                  4.33              4.00                  4.11   4.13
  Source: NJ Small Business Development Centers   1 YR CD                  4.48              3.94                  4.34   4.22
     http://www.njsbdc.com/contact/map.asp        2 YR CD                  4.20              4.10                  4.29   4.19
                                                  3 YR CD                  4.14              4.16                  4.37   4.22
                                                  4 YR CD                  4.24              4.20                  4.34   4.26
                                                  5 YR CD                  4.42              4.49                  4.60   4.51
       Evaluating MCOF Effect


Going forward we need to know:
  How much new money will be raised
  The rates paid on the new money
  The cost of the re-priced existing money

With some assumptions, we can use a model to
predict the effects of a future deposit promotion.
Marginal Cost of Funds
                                Advancing Housing and Community Growth


                                                Maureen Kalena
                             Vice President, Banking Services Division
                                212-441-6706 • kalena@fhlbny.com




                        101 Park Avenue • New York, NY 10178 • www.fhlbny.com
The information provided by the Federal Home Loan Bank of New York ("FHLBNY") in this communication is set forth for informational purposes only.
The information should not be construed as an opinion, recommendation or solicitation regarding the use of any financial strategy and/or the purchase
or sale of any financial instrument. All customers are advised to conduct their own independent due diligence before making any financial decisions.
Please note that the past performance of any FHLBNY service or product should not be viewed as a guarantee of future results. Also, the information
presented here and/or the services or products provided by the FHLBNY may change at any time without notice.

				
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